Disney+ has expressed concerns over proposed UK legislation that may require the streaming service to send contract renewal notices and enable users to “game” the system without paying, potentially leading to a price hike.
The draft Digital Markets, Competition and Consumers Bill introduced by the UK government aims to regulate the interactions between subscription streamers and their customers.
Disney argues that the legislation attempts to micromanage the way subscription streamers engage with their customers and imposes unnecessary obligations. The current form of the bill mandates streamers to send reminder notices to subscribers every six months to inform them of their ongoing subscription.
In response, Disney stated that it already provides timely and clear notice of recurring fees and offers an easy cancellation process. The company believes that additional email notices could have the unintended consequence of users ignoring the messages they receive.
“The combination of the market imperatives, consumer preferences, our practice of providing timely and clear notice of the recurring fee, and the ease of terminating the agreement should obviate the need for mandated renewal notices,” expressed Disney.
Disney also expressed concerns about the bill’s proposal to introduce a 14-day cooling-off period for digital subscription services. This provision would allow users to withdraw their subscriptions within two weeks without payment.
Disney warns that the legislation could lead to users “gaming the system” by subscribing, consuming content, and canceling, potentially reducing the subscriber base and necessitating price increases for loyal customers.
“This would allow these bad actors to benefit from our service without compensation to the detriment of the vast majority of good actors as it could likely result in a price hike given the reduction in the subscriber base and the high cost of producing high-quality content,” stated Disney.
